Has my bank broke their contract with my debit card by allowing it to go overdrawn?
2006-12-16 11:21:17 · 11 answers · asked by PETER S 1 in Business & Finance ➔ Personal Finance
They let you go overdrawn so they can charge you for an unauthorised overdraft. My bank doesn't do this but they have charged me for unpaid Direct Debits and Standing Orders in the past.
2006-12-16 11:31:06 · answer #1 · answered by b97st 7 · 1⤊ 0⤋
To the second answer...the debit card is also used as a credit card. You have the option of paying as debit or credit when you use your debit card in any store. But they do also have credit cards, that's something seperate than what the asker is talking about. You should still be able to use your debit card even if you have $0 for a balance, but there will be a fee. Hopefully it's something you honestly need, and just make sure you do one purchase. If you make more than 1 and it's under you'll get multiple fees.
2016-05-23 00:06:36 · answer #2 · answered by ? 4 · 0⤊ 0⤋
The onus will always be on you as a responsible account holder to withdraw only what you have in the account or what you can safely pay back if an overdraft facility applies. To answer your question, they allow you to do it because they make money out of it. There is no such thing as a free lunch!
2006-12-16 11:25:29 · answer #3 · answered by Anonymous · 2⤊ 0⤋
Profit my friend.
Never trust a bank, they are only there to make money from YOU.
In relation to your question you will incur charges hence the answer above, phone them and let them know they have broken the contract if there are any charges they should refund you the money, if not go to the citizans advice they will will help you out.
good luck
2006-12-16 11:34:21 · answer #4 · answered by Lion Head 3 · 0⤊ 0⤋
I know my daughter was surprised at this; she mistakenly assumed that she wouldn't be able to withdraw if there wasn't enough money there. $25 later she discovered that it wasn't the case! Yes, it's a way for banks to make income off accounts that are set up to be "free" sometimes. They have to make money on it all somehow!
2006-12-16 11:30:24 · answer #5 · answered by poppet 6 · 1⤊ 0⤋
It depends what's on your contract doesn't it.........find the details and read it.
They let you go overdrawn so that you have to pay them back millions in interest.
2006-12-16 11:26:07 · answer #6 · answered by Anonymous · 1⤊ 0⤋
from a moral or commercial point of view I could't comment. But purely factual it is for a combination of two reasons.
Some shops don't always 'dial in' in real time as you make a purchase. In this instance they will take money up to a maximum of thier 'fall limit' or your credit guarantee limit (this will be stated on your card).
If your balace is lower than this limit then you will go in the red.
2006-12-16 11:32:32 · answer #7 · answered by James B 2 · 0⤊ 1⤋
No, they do it so they can make money off of you by making you pay overdrawn fees.
2006-12-16 11:28:25 · answer #8 · answered by Kristy 3 · 1⤊ 0⤋
no, silly, that contract said that you agree to pay "all applicable fees and costs", sorry
2006-12-16 11:35:29 · answer #9 · answered by littleone60014 2 · 0⤊ 0⤋
so they can charge you that stupid overdraft fee, that kills me.
2006-12-16 11:32:56 · answer #10 · answered by Anonymous · 1⤊ 0⤋